AEI Income & Growth Fund XXI Ltd Partnership Files 10-Q for Q1 2024

TL;DR

<b>AEI Income & Growth Fund XXI Ltd Partnership filed its quarterly report (10-Q) for the period ending March 31, 2024, confirming it has met its filing obligations.</b>

AI Summary

AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP (XXAAU) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Filed a Form 10-Q for the quarterly period ended March 31, 2024. Registrant is AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP. Incorporated in the State of Minnesota. Has submitted all required reports for the preceding 12 months. As of May 15, 2024, there were 17,076.71 Units of limited partnership outstanding.

Why It Matters

For investors and stakeholders tracking AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP, this filing contains several important signals. This filing provides an update on the financial performance and operational status of the partnership for the first quarter of 2024. The report confirms the partnership is not a shell company and has been compliant with SEC filing requirements.

Risk Assessment

Risk Level: low — AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP shows low risk based on this filing. The filing is a routine quarterly report (10-Q) and does not contain significant new financial data or strategic shifts, indicating a low level of immediate risk from this specific filing.

Analyst Insight

Monitor future filings for detailed financial performance and any changes in operational status or unit distribution.

Key Numbers

• 17,076.71 — Units of limited partnership (Outstanding as of May 15, 2024)
• 20240331 — Quarterly Period End Date (Reported period)
• 20240514 — Filing Date (Date of submission)

Key Players & Entities

• AEI INCOME & GROWTH FUND XXI LTD PARTNERSHIP (company) — Filer name
• March 31, 2024 (date) — Quarterly period ended
• 0000931755-24-000006 (filing_id) — Accession Number
• 17,076.71 (dollar_amount) — Units of limited partnership outstanding as of May 15, 2024
• Minnesota (location) — State of incorporation
• 6512277333 (phone) — Business phone number

FAQ

Risk Factors

• Filing Compliance [low — regulatory]: The registrant has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days.

Industry Context

AEI Income & Growth Fund XXI Limited Partnership operates within the real estate sector, as indicated by its SIC code 6500.

Regulatory Implications

The filing is a standard Form 10-Q, adhering to the requirements of the Securities Exchange Act of 1934 for quarterly reporting.

What Investors Should Do

1. Review the full 10-Q for detailed financial statements and management discussion.
2. Track future filings for updates on partnership performance and unit information.
3. Verify the status of limited partnership units and any associated distributions.

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending March 31, 2024, and no prior period data is available for direct comparison within this document.

Key Financial Figures

• $249,753 — Partnership recognized rental income of $249,753 and $248,758, respectively. In 2024, re
• $248,758 — ecognized rental income of $249,753 and $248,758, respectively. In 2024, rental income i
• $1,000,000 — ecognize rental income of approximately $1,000,000 in 2024. For the three months ended M
• $45,803 — ion expenses from affiliated parties of $45,803 and $44,065, respectively. These admini
• $44,065 — from affiliated parties of $45,803 and $44,065, respectively. These administration exp
• $22,135 — ment expenses from unrelated parties of $22,135 and $27,753, respectively. These expens
• $27,753 — s from unrelated parties of $22,135 and $27,753, respectively. These expenses represent
• $869 — rtnership recognized interest income of $869 and $512, respectively. Management be
• $512 — recognized interest income of $869 and $512, respectively. Management believes in
• $17,270 — e Partnership's cash balances decreased $17,270 and $31,870, respectively, as a result
• $31,870 — p's cash balances decreased $17,270 and $31,870, respectively, as a result of distribut
• $141,363 — by operating activities increased from $141,363 in 2023 to $155,963 in 2024 as a result
• $155,963 — ties increased from $141,363 in 2023 to $155,963 in 2024 as a result of an increase in t
• $173,233 — e Partnership declared distributions of $173,233, which are to be distributed 99% to the
• $171,501 — artners were allocated distributions of $171,501 and the General Partners were allocated

Filing Documents

• aei21-20240331.htm (10-Q) — 228KB
• ex2131-1.htm (EX-31.1) — 8KB
• ex2131-2.htm (EX-31.2) — 8KB
• ex2132.htm (EX-32) — 8KB
• 0000931755-24-000006.txt (&nbsp;) — 1091KB
• aei21-20240331.xsd (EX-101.SCH) — 16KB
• aei21-20240331_def.xml (EX-101.DEF) — 55KB
• aei21-20240331_lab.xml (EX-101.LAB) — 116KB
• aei21-20240331_pre.xml (EX-101.PRE) — 60KB
• aei21-20240331_cal.xml (EX-101.CAL) — 15KB
• aei21-20240331_htm.xml (XML) — 37KB

– Financial Information

Part I – Financial Information Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited): Balance Sheets as of March 31, 2024 and December 31, 2023 3 Income 4 Cash Flows 5 Changes in Partners' Capital 6 Condensed Notes to Financial Statements 7 - 8 Item 2.

Management's Discussion and Analysis of Financial

Management's Discussion and Analysis of Financial Condition and Results of Operations 9 - 12 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 13 Item 4.

Controls and Procedures

Controls and Procedures 13

– Other Information

Part II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 13 Item 1A.

Risk Factors

Risk Factors 13 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 14 Item 3. Defaults Upon Senior Securities 14 Item 4. Mine Safety Disclosures 14 Item 5. Other Information 14 Item 6. Exhibits 14

Signatures

Signatures 15 2 AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP BALANCE SHEETS ASSETS March 31, December 31, 2024 2023 (unaudited) Current Assets: Cash $ 163,290 $ 180,560 Real Estate Investments: Land 3,447,796 3,447,796 Buildings 9,825,615 9,825,615 Acquired Intangible Lease Assets 864,490 864,490 Real Estate Held for Investment, at Cost 14,137,901 14,137,901 Accumulated Depreciation and Amortization ( 3,937,034 ) ( 3,808,959 ) Real Estate Held for Investment, Net 10,200,867 10,328,942 Total Assets $ 10,364,157 $ 10,509,502 LIABILITIES AND PARTNERS' CAPITAL Current Liabilities: Payable to AEI Fund Management, Inc. $ 76,568 $ 101,262 Distributions Payable 173,233 173,233 Total Current Liabilities 249,801 274,495 Long-term Liabilities: Acquired Below-Market Lease Intangibles, Net 14,864 16,891 Partners' Capital : General Partners 6,915 8,101 Limited Partners – 24,000 Units authorized; 17,076.71 Units issued and outstanding as of 3/31/2024 and 12/31/2023 10,092,577 10,210,015 Total Partners' Capital 10,099,492 10,218,116 Total Liabilities and Partners' Capital $ 10,364,157 $ 10,509,502 The accompanying Condensed Notes to Financial Statements are an integral part of these statements. 3 AEI INCOME & GROWTH FUND XXI LIMITED PARTNERSHIP (unaudited) Three Months Ended March 31 2024 2023 Rental Income $ 249,753 $ 248,758 Expenses: Partnership Administration – Affiliates 45,803 44,065 Partnership Administration and Property Management – Unrelated Parties 22,135 27,753 Depreciation and Amortization 128,075 128,075 Total Expenses 196,013 199,893 Operating Income 53,740 48,865 Other Income: Interest Income 869 512 Net Income $ 54,609 $ 49,377 Net Income Allocated: General Partners $ 546 $ 494 Limited Partners 54,063 48,

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. This section contains "forward-looking statements" which represent management's expectations or beliefs concerning future events, including statements regarding anticipated application of cash, expected returns from rental income, growth in revenue, the sufficiency of cash to meet operating expenses, rates of distribution, and other matters. These, and other forward-looking statements, should be evaluated in the context of a number of factors that may affect the Partnership's financial condition and results of operations, including the following: — Market and economic conditions which affect the value of the properties the Partnership owns and the cash from rental income such properties generate; — the federal income tax consequences of rental income, deductions, gain on sales and other items and the effects of these consequences for the Partners; — resolution by the General Partners of conflicts with which they may be confronted; — the success of the General Partners of locating properties with favorable risk return characteristics; — the effect of tenant defaults; and — the condition of the industries in which the tenants of properties owned by the Partnership operate. Application of Critical Accounting Policies The Partnership's financial statements have been prepared in accordance with US GAAP. Preparing the financial statements requires management to use judgment in the application of these accounting policies, including making estimates and assumptions. These judgments will affect the reported amounts of the Partnership's assets and liabilities and the disclosure of contingent assets and liabilities as of the dates of the financial statements and will affect the reported amounts of revenue and expenses during the reporting periods. It is possible that the carrying amount of the Partnership's assets and liabilities, or the results of re

MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued) The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized on a straight-line basis as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management's consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangible

MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued) Allocation of Expenses AEI Fund Management, Inc. allocates expenses to each of the funds they manage primarily on the basis of the number of hours devoted by their employees to each fund's affairs. They also allocate expenses at the end of each month that are not directly related to a fund's operations based upon the number of investors in the fund and the fund's capitalization relative to other funds they manage. The Partnership reimburses these expenses subject to detailed limitations contained in the Partnership Agreement. Factors Which May Influence Results of Operations The Partnership is not aware of any material trends or uncertainties, other than national economic conditions affecting real estate generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on revenues and investment property value. However, due to current economic factors, higher interest rates, and inflation in the US and globally, our tenants and operating partners may be impacted. Results of Operations For the three months ended March 31, 2024 and 2023, the Partnership recognized rental income of $249,753 and $248,758, respectively. In 2024, rental income increased due to two properties with rent increases in 2023. Based on the scheduled rent for the properties owned as of April 30, 2024, the Partnership expects to recognize rental income of approximately $1,000,000 in 2024. For the three months ended March 31, 2024 and 2023, the Partnership incurred Partnership administration expenses from affiliated parties of $45,803 and $44,065, respectively. These administration expenses include costs associated with the management of the properties, processing distributions, reporting requirements and communicating with the Limited Partners. During the same periods, the Partnership incurred Partnership administration and property management expenses from unrelated parties of $22,135 and $27,753

MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued)

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. (Continued) Liquidity and Capital Resources During the three months ended March 31, 2024 and 2023, the Partnership's cash balances decreased $17,270 and $31,870, respectively, as a result of distributions paid to the Partners in excess of cash generated from operating activities. Net cash provided by operating activities increased from $141,363 in 2023 to $155,963 in 2024 as a result of an increase in total rental income, a decrease in Partnership administration and property management expenses and net timing differences in the collection of payments from tenants in 2024. The major components of the Partnership's cash flow from investing activities are investments in real estate and proceeds from the sale of real estate. During the three months ended March 31, 2024 and 2023, the Partnership did not complete any property acquisitions or property sales. The Partnership's primary use of cash flow, other than investment in real estate, is distribution payments to Partners and cash used to repurchase Units. The Partnership declares its regular quarterly distributions before the end of each quarter and pays the distribution in the first week after the end of each quarter. The Partnership attempts to maintain a stable distribution rate from quarter to quarter. The Partnership may repurchase tendered Units on April 1st and October 1st of each year subject to limitations. For the three months ended March 31, 2024 and 2023, the Partnership declared distributions of $173,233, which are to be distributed 99% to the Limited Partners and 1% to the General Partners. The Limited Partners were allocated distributions of $171,501 and the General Partners were allocated distributions of $1,732 for the periods ended March 31, 2024 and 2023. The Partnership may repurchase Units from Limited Partners who have tendered their Units to the Partnership. Such Units may be acquired at a discount. The Partnership will not be obligated

QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE & QUALITATIVE DISCLOSURES ABOUT MARKET RISK. Not required for a smaller reporting company.

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES. (a) Disclosure Controls and Procedures. Under the supervision and with the participation of management, including its President and Chief Financial Officer, the Managing General Partner of the Partnership evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")). Based upon that evaluation, the President and Chief Financial Officer of the Managing General Partner concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in applicable rules and forms and that such information is accumulated and communicated to management, including the President and Chief Financial Officer of the Managing General Partner, in a manner that allows timely decisions regarding required disclosure. (b) Changes in Internal Control Over Financial Reporting. During the most recent period covered by this report, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

– OTHER INFORMATION

PART II – OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS. There are no material pending legal proceedings to which the Partnership is a party or of which the Partnership's property is subject.

RISK FACTORS

ITEM 1A. RISK FACTORS . Not required for a smaller reporting company. 13

UNREGISTERED SALES OF EQUITY SECURITIES & USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES & USE OF PROCEEDS. (a) None. (b) Not applicable. (c) Pursuant to Section 7.7 of the Partnership Agreement, as amended, each Limited Partner has the right to present Units to the Partnership for purchase by submitting notice to the Managing General Partner during January or July of each year. The purchase price of the Units is equal to 95% of the net asset value per Unit, as of the first business day of January or July of each year, as determined by the Managing General Partner in accordance with the provisions of the Partnership Agreement. Units tendered to the Partnership during January and July may be repurchased on April 1 st and October 1 st , respectively, of each year subject to the following limitations. The Partnership will not be obligated to purchase in any year more than 5% of the total number of Units outstanding on January 1 of such year. In no event shall the Partnership be obligated to purchase Units if, in the sole discretion of the Managing General Partner, such purchase would impair the capital or operation of the Partnership. During the period covered by this report, the Partnership did not purchase any Units.

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None.

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES. Not Applicable.

OTHER INFORMATION

ITEM 5. OTHER INFORMATION. None.

EXHIBITS

ITEM 6. EXHIBITS. 31.1 Certification of President of General Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer of General Partner pursuant to Rule 15d-14(a)(17 CFR 240.15d-14(a)) and Section 302 of the Sarbanes-Oxley Act of 2002. 32 Certification of President and Chief Financial Officer of General Partner pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 14

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: May 14, 2024 AEI Income & Growth Fund XXI Limited Partnership By: AEI Fund Management XXI, Inc. Its: Managing General Partner By: /s/ Marni J Nygard Marni J. Nygard President (Principal Executive Officer) By: /s/ Keith E Petersen Keith E. Petersen Chief Financial Officer (Principal Accounting Officer)

View Full Filing

View this 10-Q filing on SEC EDGAR